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cailianshe news, september 2 (reporter lin jian)the reporter has recently learned that china securities depository and clearing corporation has recently launched an investigation into accounts suspected of illegal borrowing in the market from january to july 2024. securities firms need to provide feedback on the investigation results, and the investigation is currently in progress.

the specific requirements of this verification work include six aspects:

the securities law explicitly prohibits natural persons from lending securities accounts or using other people's securities accounts to engage in securities transactions. if a natural person uses other people's securities accounts to engage in securities transactions in violation of regulations, it constitutes a disruption to the normal trading order of the securities market.liability cannot be exempted due to factors such as not engaging in illegal activities, lending the funds free of charge, or the transaction occurring between relatives, etc.regulators have repeatedly stressed that investors should strengthen their awareness of the rule of law and not lend out their securities accounts.

on september 1, the financial supervision administration, the people's bank of china, and the china securities regulatory commission jointly launched the "financial education promotion month" in 2024. all financial management departments will work with relevant departments in all regions to thoroughly implement the spirit of the third plenary session of the 20th cpc central committee, take the joint "financial education promotion month" as an opportunity, cultivate the industry ecology with chinese-style financial culture, closely combine financial education with grassroots governance, and closely combine the protection of the legitimate rights and interests of financial consumers and investors with risk prevention, strengthening supervision, and promoting development, improve relevant systems, improve cross-departmental collaboration mechanisms, and enhance work synergy.

the maximum penalty for lending or borrowing securities accounts is 500,000 yuan

according to the relevant provisions of the new securities law, any unit or individual shall not violate the provisions by lending their own securities accounts or borrowing other people's securities accounts to engage in securities transactions. anyone who lends his or her own securities accounts or borrows other people's securities accounts to engage in securities transactions shall be ordered to correct the violation and given a warning.a fine of up to rmb 500,000 may be imposed.

articles 58 and 195 of the new securities law improve the real-name system requirements for securities accounts in terms of subjects, behavior patterns, and legal responsibilities.first, the scope of illegal entities has been expanded to include individuals on the basis of legal persons; second, the illegal behavior has been expanded to include individual lending and borrowing on the basis of legal persons borrowing or lending other people's securities accounts, and the original qualifier "illegal use" has been changed to "violation of regulations"; third, "confiscation of illegal gains" has been deleted from the penalty provisions and the multiple fines have been revised to fixed penalties.

the hottest topic in recent discussions about illegal borrowing of other people's securities accounts is that the super bull zhang jianping was punished by the china securities regulatory commission. on the evening of august 16, the china securities regulatory commission announced an administrative penalty decision on zhang jianping and fang deji. the regulatory penalty notice shows that after investigation, zhang jianping and fang deji committed the following illegal acts:

on july 15, 2014, fang deji opened a guotai junan securities ordinary account at a guotai junan securities branch. on the same day, fang deji opened a guotai junan securities credit account at a guotai junan securities branch.

from march 1, 2020 to october 27, 2023, fang deji lent the above-mentioned securities account to zhang jianping for use. zhang jianping used the above-mentioned securities account to engage in securities trading.

the regulator said that the above illegal facts are sufficient to be confirmed by evidence such as securities account information and transaction flow, bank account information and fund flow, and relevant personnel interrogation records. the csrc stated that it has filed a case to investigate and hear the behavior of zhang jianping and fang deji in borrowing and lending securities accounts, and informed the parties of the facts, reasons, basis and rights of the parties in accordance with the law. the parties did not make any statements or defense opinions, nor did they request a hearing. the investigation and hearing of the case have now ended.

the csrc believes that the above-mentioned actions of zhang jianping and fang deji violate article 58 of the securities law and constitute the act of borrowing other people's securities accounts and lending their own securities accounts as described in article 195 of the securities law. based on the facts, nature, circumstances and degree of social harm of the parties' illegal acts, and in accordance with article 195 of the securities law, the csrc decides:

1. order zhang jianping to make corrections, give him a warning, and impose a fine of rmb 500,000;

2. the party deji was ordered to make corrections, given a warning, and fined rmb 500,000.

from the perspective of laws and regulations, the 500,000 yuan fines imposed on zhang jianping and fang deji are both the maximum fines. in the case of borrowing other people's securities accounts disclosed on august 16, a radio and television host zhang meng was ordered to correct his behavior and fined 300,000 yuan for borrowing other people's securities accounts to engage in securities trading. wang lin, zhou yanxia, ​​chen lei, and li tingting were also fined 30,000 yuan each for lending securities accounts.

the new securities law has shown its power, with many cases of maximum penalties

the lending and borrowing of accounts may be related to illegal activities such as market manipulation and insider trading. it is not difficult to find that in recent years, the csrc has consistently cracked down on illegal transactions such as market manipulation and insider trading, and the intensity of punishment has been visibly strengthened to help maintain the normal functioning of market pricing. in february, april, may and july of this year alone, the csrc punished relevant violators.

the data also showed that in the first half of this year, the csrc imposed penalties on 45 cases of market manipulation and insider trading, an increase of about 10% year-on-year, and punished 85 responsible entities, an increase of about 37% year-on-year. the amount of fines and confiscations was about 2.3 billion yuan, an increase of about 9% year-on-year.

the reporter noticed that on may 11, 2022, after the implementation of the new securities law, the anhui securities regulatory bureau imposed the market's first administrative penalty for "illegally borrowing other people's accounts to engage in securities trading." zheng energy storage borrowed the accounts of "ye mouwu" and "li moujian" to trade "guoxuan mouke", and bought a total of 2,352,300 shares for 35,845,750 yuan; sold a total of 1,450,300 shares for 21,704,732 yuan; and lost a total of 1,782,892.94 yuan.

the above behavior of zheng mou energy storage violated article 58 of the securities law, which states that "no unit or individual may violate the provisions and lend out their own securities accounts or borrow the securities accounts of others to engage in securities transactions", and constituted the situation described in article 195 of the securities law, which states that "anyone who violates the provisions of article 58 of this law and lends out his own securities accounts or borrows the securities accounts of others to engage in securities transactions shall be ordered to make corrections, given a warning, and may be fined up to rmb 500,000." based on the facts, nature, circumstances, and degree of social harm of the party's illegal behavior, the anhui securities regulatory bureau made a penalty decision to "order zheng mou energy storage to make corrections, give a warning, and impose a fine of rmb 200,000."

on november 21, 2023, the csrc announced three administrative penalty decisions, all involving the lending or borrowing of securities accounts. one of them involved the borrowing of securities accounts from relatives, which was the first time that the csrc imposed the maximum penalty on the borrowing of stock accounts since the implementation of the new securities law.

specifically, the csrc stated that it was found that from march 31, 2020 to april 30, 2021, li pengzhen borrowed the credit account of "li moufeng" at essence securities to trade 23 stocks including "*st cross-border", buying a total of 43.4868 million shares with a total purchase transaction amount of 432 million yuan; a total of 37.3461 million shares were sold with a total selling transaction amount of 357 million yuan.

"from may 6, 2020 to april 30, 2021, li pengzhen borrowed the bank of china international general securities account of 'li mouqin' to trade 9 stocks including '*st cross-border', buying a total of 14.5003 million shares with a total purchase transaction amount of 88.4046 million yuan; and selling a total of 14.3635 million shares with a total selling transaction amount of 78.0591 million yuan." the csrc pointed out.

the csrc further pointed out that from march 27, 2020 to april 30, 2021, li pengzhen borrowed the general account of "yang moufeng" at essence securities to trade six stocks including "*st cross-border", buying a total of 11.6614 million shares with a total purchase transaction amount of 71.0616 million yuan; selling a total of 8.7821 million shares with a total selling transaction amount of 45.978 million yuan.

the csrc stated that the funds in the above securities accounts all came from li pengzhen's own funds, and mainly went into li pengzhen's bank accounts, and li pengzhen controlled the use of the above securities accounts. li pengzhen's above-mentioned behavior violated article 58 of the securities law and constituted the behavior of borrowing other people's securities accounts to engage in securities transactions as described in article 195 of the securities law.